The healthcare industry in the United States is among the largest industries globally and is also one of the most dynamic and profitable. In recent years, it has seen great strides in growth; this is due to the fact that the country continues to be the largest consumer of healthcare, and the industry continues to grow. Due to this growth, several people are beginning to take an interest in investing or venturing into the healthcare sector through healthcare franchising. If you’re like most people asking about the cost of a healthcare franchise, the actual price varies depending on the branch of the healthcare sector you want to venture into.
For instance, if you wish to buy an urgent care franchise from AFC, the price ranges between $1,008,000 to $1,441,500. For some other healthcare sectors, the franchise could be up to $2,000,000
The total healthcare franchise cost often includes; franchise fee, liquid capital, training, travel expenses, medical equipment and supplies, cost of construction of building or rental, insurance, legal fee, and many more. However, the cost of a healthcare franchise also depends on other factors, including location and more.
Factors That Influence The Cost Of Buying A Healthcare Franchise
Location Of The Franchise
Good locations for a healthcare franchise are ones with growing populations and relatively high incomes because this will ensure a pool of people who can afford the services your franchise offers. You’ll also need to consider the demographics of the area, including age, gender, and the available demand for your healthcare service.
Your location can also play a role in the cost of the franchise. High-traffic locations will usually cost more, thereby increasing your overhead franchise cost. Nonetheless, please take note that it is better to start a franchise in a place where the population is growing than in an area that is shrinking rapidly.
Your location can also affect your building construction cost or rental cost. It’s also possible to run into unexpected expenses during site selection or construction, like extra work needed to make your chosen space compliant with ADA regulations; this can quickly add up to the cost of buying a healthcare franchise.
The Size Of Your Staff
Depending on the size of your building, you’ll need a receptionist, nurses, and at least one doctor. If you have enough patients coming through the door to support it, another doctor would be beneficial. Some of your staff may be full-time and others part-time, but if your business takes off, you may also have to hire additional staff. Don’t forget about maintenance. You also need to find out if you need to hire a permanent cleaner or routinely call professional cleaners. These gradually add up to your labor expense and, in turn, your franchise cost.
Cost of Training to Operate the Business
The training cost varies depending on your franchisor, and it’s usually added to the franchise fee. Some franchises charge a flat fee for the training, which can be both in-person and online, or one-on-one and group sessions, while others charge a percentage of what you’ll invest initially.
Though the training offered by franchisors is very comprehensive, some franchisees like to conduct extra training and seminars for their staff before starting up. All these come at an extra fee.
Some healthcare franchisors offer strong support to their franchise. They often request some fee from franchisees to have their branch included in the advertisement campaign of the company. However, in addition to that, you could also conduct some personal marketing in your local newspaper, television show, and via other marketing outlets. The marketing of your business is important, and it can cost an increase in the total investment.
The medical equipment can also influence the price of buying a healthcare franchise. The equipment for your healthcare franchise business depends on how large of a facility you want and how many services you plan to offer.
Some equipment needs licenses from government agencies and insurance coverage from vendors that provide payment plans for equipment purchases (buy instead of renting). These could be computers or diagnostic machines such as ultrasounds or EKG machines. You might also need chairs and tables for patient waiting rooms or exam rooms where patients can get measured before being fitted with braces or casts if they’ve sustained an injury. The price can vary widely depending on what kind of equipment your particular franchise requires.